An Asset Worth $85m in 2013...

NY Times article, for those interested: http://bits.blogs.nytimes.com/2016/01/28/facebook-to-shut-down-parse-its-platform-for-mobile-developers/?_r=0

FB paid USD$85m for Parse (shares and cash) in 2013 just before FB listed. This was seen as a strong route for FB to generate revenue, as at the time, FB was listing at very frothy PE's and needed to prove itself via earnings streams.

Most importantly: the reason behind FB losing interest in Parse is purely because of its success in achieving revenue through other avenues (Mainly advertising), which allowed FB to focus on what they do best, Social Media and Advertising.

Basically, FB bought them when they were weak in mobile and wanted to become a software platform. They’re now very strong in mobile, and their focuses are 1) social, 2) advertising, 3) VR. Anything outside that they’re jettisoning.

When FB acquired Parse for $85m, it had 100,000 users. Fast forward a couple years later and there are over and 1.1m users attached to the platform. If FB's banks corp advisory teams etc etc thought it was worth $85b purely on 100k users, what the hell is it worth now ??

Buddy will be the 1^ststop for a very large portion on the mobile app market. Not only will they get the Parse revenue, they will have an endless stream of new business opportunities. Buddy software complements Parse's to the point where the integration will be seamless and massive economies of scale will be achieved.

Buddy picks all this up for a mere integration spend (probably a couple of hundred k's).

This story of a delayed market reaction to something massive is all too familiar.

who remembers when 1PG released this ann:



dead silence the day this announcement was released, maybe a 5-10% rise.

.....and then came a 20 bagger